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FinanceAPI: US commercial crude stocks fall for 10th week; SPR hits over 40-year low
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The American Petroleum Institute (API) reported a 765,000-barrel decline in US crude oil inventories for the week ending June 19, following an 8.33 million-barrel drop the prior week. While commercial inventories excluding the Strategic Petroleum Reserve (SPR) have fallen by 53 million barrels over the past ten weeks, total US crude inventories are only down 2.1 million barrels year-to-date due to ongoing transfers from the SPR. Another 9.1 million barrels were released from the SPR in the latest week, dropping total SPR holdings to 331.2 million barrels—the lowest level in over four decades and 394 million barrels below maximum capacity. US oil production edged up to 13.806 million barrels per day. Brent crude fell to $77.10 (-1.03%) as flows from the Strait of Hormuz resumed. Gasoline inventories rose by 1.238 million barrels and distillate stocks increased by 1.447 million barrels, while Cushing hub inventories declined by 982,000 barrels. The article highlights the strain on the SPR as it compensates for falling commercial stocks.
Source report
The American Petroleum Institute (API) estimated that crude oil inventories in the United States fell by 765,000 barrels in the week ending June 19. This follows a larger decline of 8.33 million barrels in the prior week.
Commercial Inventories and SPR Drawdown
According to API data, commercial crude oil inventories excluding the Strategic Petroleum Reserve (SPR) have been falling rapidly for over two months, shedding 53 million barrels over the last ten weeks. However, U.S. crude inventories are only down 2.1 million barrels so far this year, held in check by draws from the SPR.
Slowing the inventory decline has come at a cost. Commercial inventories have been supported by a steady transfer of barrels from the SPR into the commercial system, leaving the SPR at its lowest level in more than four decades.
For the week ending June 19, another 9.1 million barrels left the SPR, bringing the total to 331.2 million barrels—lower than the 2023 low reached during the Biden Administration’s large drawdown and the lowest level in over 40 years. SPR inventories are now 394 million barrels shy of maximum capacity.
U.S. Production
U.S. crude oil production rose to 13.806 million barrels per day (bpd) for the week ending June 12, up from 13.799 million bpd in the prior week, according to the latest EIA data. Production is up 375,000 bpd from a year earlier.
Market Reaction
At 4:09 pm ET on Tuesday, before the data release:
- Brent crude traded sharply down at $77.10 (–1.03%), as flows from the Strait of Hormuz began to resume.
- WTI traded down by $0.52 per barrel (–0.70%) at $73.34, roughly $3 per barrel lower than last Tuesday.
Product Inventories
Gasoline
- Rose by 1.238 million barrels in the week ending June 19.
- This follows an increase of 2.479 million barrels in the prior week.
- As of the week ending June 12, gasoline inventories were already 6% below the five-year average for this time of year, per the latest EIA data.
Distillates
- Rose by 1.447 million barrels, after a decline of 461,000 barrels in the prior week.
- As of the week ending June 12, distillate inventories were 13% below the five-year average, according to the latest EIA data.
Cushing Inventory
- Fell by 982,000 barrels over the reporting period, following a decline of 1.523 million barrels in the prior week.
- Cushing, Oklahoma, is the delivery hub for the WTI crude futures contract.
By Julianne Geiger for Oilprice.com
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Source
OilPrice.com Daily News UpdateWestern
Part of this Story
U.S. crude oil inventories drop for sixth straight week, SPR continues drawdown